Cable must come clean on ‘mates’ rates’ for Royal Mail

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Unite, Britain’s biggest union, has demanded that the government confirms the names of all the 17 priority investors it gave ‘mates’ rates’ to buy Royal Mail shares.

Business secretary Vince Cable and business minister Michael Fallon continued to defend their ‘botched’ privatisation of Royal Mail at the Business select committee today (29 April) amid claims it cost over £1 billion to taxpayers.

Unite national officer Brian Scott said: “Money that should be flowing into the Treasury for schools and hospitals ended up in the hands of City funds and rapacious investors. Why on earth did Vince Cable believe that the ‘priority investors’ would act as stable, long-term investors in the privatised Royal Mail?

“The taxpayer has a right to know the circumstances surrounding the botched privatisation of Royal Mail. Who were the priority investors it gave ‘mates’ rates’ to, why were they picked and what guarantees did the government seek to secure long term investors for the Royal Mail?

“If the Department for Business, Innovation and Skills does not come clean at the earliest opportunity then there must be a proper independent investigation.”

ENDS

Contact: Ciaran Naidoo on 07768 931 315

Notes for editors:

Unite is Britain and Ireland’s largest trade union with over 1.4 million members working across all sectors of the economy. The general secretary is Len McCluskey.